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Special Needs Trusts are trusts that allow individuals receiving public benefits, such as Medicaid or Supplemental Security Income, to maintain their eligibility for benefits and to receive funds from the Special Needs Trust to provide supplemental items, above and beyond what Medicaid and/or Supplemental Security Income will pay for.

There are three (3) main types of Special Needs Trust – First Party Special Needs Trusts, Third Party Special Needs Trusts, and Pooled Special Needs Trusts.

A First Party Special Needs Trust is a trust created with the assets of a disabled individual under age 65 (often from the proceeds of a personal injury case or an inheritance from a family member). These trusts must be established by a parent, grandparent, legal guardian, or court for the benefit of the disabled individual. These types of trusts do require repayment to the State of Florida for amounts the State paid towards the disabled individual’s care. After this payback is made, any remaining funds in the trust can be paid out as designated in the trust document.

A Third Party Special Needs Trust is a trust created for the benefit of a disabled individual with the assets of a third party (typically a parent or other family member). These trusts can be created by anyone other than the disabled individual. These trusts do not require that the State of Florida be paid back for amounts that the State paid towards the care provided to the disabled individual and any funds remaining in the trust on the death of the disabled individual may go to the remainder beneficiaries listed by the Grantor in the Trust document.

A Pooled Special Needs Trust is a trust that is managed by a non-profit organization for a group of disabled individuals. The organization pools the funds of the disabled individuals. Each disabled individual joins the trust through a Joinder Agreement and an account is established for each individual. These types of trusts can be a cost effective tool to preserve eligibility for Supplement Security Income (SSI) and Medicaid and are especially useful for disabled individuals over age 65 in Florida.

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The Miller Elder Law Firm, PA serving clients in North Central Florida including Gainesville, Ocala, Jacksonville, Tallahassee, Lake City, Alachua County, Gilchrist County, Levy County, Union County, Bradford County, St Johns County, Flagler County and Marion County.